View Filing Data

Print Document View Excel Document

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2018	Aug. 01, 2018
Document and Entity Information
Entity Registrant Name	Quanterix Corp
Entity Central Index Key	0001503274
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		22,099,647
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 60,474	$ 79,682
Accounts receivable (including $19 and $123 from related parties as of June 30, 2018 and December 31, 2017, respectively)	3,586	5,599
Inventory	5,486	3,571
Prepaid expenses and other current assets	1,152	400
Total current assets	70,698	89,252
Property and equipment, net	2,406	1,874
Intangible assets, net	2,676
Goodwill	1,308
Other non-current assets	684	653
Total assets	77,772	91,779
Current liabilities:
Accounts payable	3,117	3,552
Accrued compensation and benefits	2,312	2,624
Other accrued expenses (including $179 and $170 to related parties as of June 30, 2018 and December 31, 2017, respectively)	4,181	3,560
Deferred revenue (including $1,119 and $1,182 with related parties as of June 30, 2018 and December 31, 2017, respectively)	6,141	4,942
Current portion of long term debt	7,605	5,036
Total current liabilities	23,356	19,714
Deferred revenue, net of current portion (including $537 and $1,074 with related parties as of June 30, 2018 and December 31, 2017, respectively)	1,135	1,709
Long term debt, net of current portion		4,346
Other non-current liabilities	106	144
Total liabilities	24,597	25,913
Commitments and contingencies (Note 11)
Stockholders' equity:
Preferred stock, $0.001 par value: Authorized-5,000,000 shares as of June 30, 2018 and December 31, 2017; no shares issued or outstanding as of June 30, 2018 and December 31, 2017
Common stock, $0.001 par value; Authorized-120,000,000 shares as of June 30, 2018 and December 31, 2017; issued and outstanding-21,980,681 and 21,707,041 shares as of June 30, 2018 and December 31, 2017, respectively	22	22
Additional paid-in capital	212,050	210,196
Accumulated deficit	(158,897)	(144,352)
Total stockholders' equity	53,175	65,866
Total liabilities and stockholders' equity	$ 77,772	$ 91,779

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Condensed Consolidated Balance Sheets
Accounts receivable, related parties	$ 19	$ 123
Other accrued expenses, related parties	179	170
Deferred revenue, current, related parties	1,142	1,182
Deferred revenue, net of current portion, related parties	$ 537	$ 1,074
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized shares	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized shares	120,000,000	120,000,000
Common stock, shares issued	21,980,681	21,707,041
Common stock, shares outstanding	21,980,681	21,707,041

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Condensed Consolidated Statements of Operations and Comprehensive Loss
Product revenue (including related party activity of $44 and $144 for the three months ended June 30, 2018 and 2017, respectively, and $137 and $227 for the six months ended June 30, 2018 and 2017, respectively)	$ 5,200	$ 3,337	$ 9,945	$ 6,762
Service and other revenue (including related party activity of $58 and $50 for the three months ended June 30, 2018 and 2017, respectively, and $97 and $91 for the six months ended June 30, 2018 and 2017, respectively)	3,174	1,608	5,682	3,252
Collaboration and license revenue (including related party activity of $268 and $268 for the three months ended June 30, 2018 and 2017, respectively, and $537 and $537 for the six months ended June 30, 2018 and 2017, respectively)	269	268	537	537
Total revenue	8,643	5,213	16,164	10,551
Operating expenses:
Cost of product revenue (including related party activity of $46 and $96 for the three months ended June 30, 2018 and 2017, respectively, and $122 and $152 for the six months ended June 30, 2018 and 2017, respectively)	2,945	1,834	5,718	3,668
Cost of services and other revenue	1,725	1,198	3,301	2,342
Research and development	3,705	3,903	7,349	8,153
Selling, general and administrative	7,579	4,747	14,271	8,913
Total operating expenses	15,954	11,682	30,639	23,076
Loss from operations	(7,311)	(6,469)	(14,475)	(12,525)
Interest income (expense), net	16	(240)	(9)	(496)
Other (expense) income, net	(48)	77	(61)	(2)
Net loss	(7,343)	(6,632)	(14,545)	(13,023)
Reconciliation of net loss to net loss attributable to common stockholders:
Net loss	(7,343)	(6,632)	(14,545)	(13,023)
Accretion of preferred stock to redemption value		(1,099)		(2,189)
Accrued dividends on preferred stock		(16)		(32)
Net loss attributable to common stockholders	$ (7,343)	$ (7,747)	$ (14,545)	$ (15,244)
Net loss per share attributable to common stockholders, basic and diluted	$ (0.34)	$ (3.21)	$ (0.67)	$ (6.31)
Weighted-average common shares outstanding, basic and diluted	21,890,978	2,416,984	21,840,074	2,416,984

Condensed Consolidated Statements of Operations and Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Condensed Consolidated Statements of Operations and Comprehensive Loss
Product revenue, related party activity	$ 43	$ 144	$ 136	$ 227
Service and other revenue, related party activity	58	50	97	91
Collaboration and license revenue, related party activity	269	268	537	537
Cost of product revenue, related party activity	$ 47	$ 96	$ 122	$ 152

Condensed Consolidated Statement of Stockholders' Equity - 6 months ended Jun. 30, 2018 - USD ($) $ in Thousands	Common stock	Additional paid-in capital	Accumulated deficit	Total
Beginning Balance at Dec. 31, 2017	$ 22	$ 210,196	$ (144,352)	$ 65,866
Beginning Balance (in shares) at Dec. 31, 2017	21,707,041			21,707,041
Changes in stockholders' equity
Exercise of common stock warrants (in shares)	16,718
Exercise of common stock options and vesting of restricted stock		381		$ 381
Exercise of common stock options and vesting of restricted stock (in shares)	256,922
Common stock issuance offering costs		(53)		(53)
Stock-based compensation expense		1,526		1,526
Net loss			(14,545)	(14,545)
Ending Balance at Jun. 30, 2018	$ 22	$ 212,050	$ (158,897)	$ 53,175
Ending Balance (in shares) at Jun. 30, 2018	21,980,681			21,980,681

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Operating activities
Net loss	$ (14,545)	$ (13,023)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense	609	215
Stock-based compensation expense	1,526	808
Non-cash interest expense	99	129
Change in fair value of preferred stock warrants		(31)
Changes in operating assets and liabilities:
Accounts receivable	2,223	791
Prepaid expenses and other assets	(681)	(220)
Inventory	(1,087)	(710)
Other non-current assets		(831)
Accounts payable	(626)	(560)
Accrued compensation and benefits, other accrued expenses and other liabilities	(957)	1,165
Deferred revenue	(531)	2,048
Net cash used in operating activities	(13,970)	(10,219)
Investing activities
Purchases of property and equipment	(690)	(663)
Acquisitions, net of cash acquired	(3,001)
Net cash used in investing activities	(3,691)	(663)
Financing activities
Proceeds from sale of preferred stock, net of issuance costs		8,423
Proceeds from sale of common stock, net of issuance costs	(53)
Proceeds from exercise of stock warrants		1
Proceeds from stock options exercised	381	60
Proceeds from the issuance of notes payable and warrants, net of issuance costs		(59)
Payments on notes payable	(1,875)	(921)
Net cash (used in) provided by financing activities	(1,547)	7,504
Net decrease in cash and cash equivalents	(19,208)	(3,378)
Cash and cash equivalents at beginning of period	79,682	29,671
Cash and cash equivalents at end of period	60,474	26,293
Supplemental cash flow information
Accretion of redeemable convertible preferred stock to redemption value		2,189
Cash paid for interest	347	375
Warrants issued to lenders		119
Purchases of property and equipment included in accounts payable	$ 29	$ 86

Organization and operations	6 Months Ended
Organization and operations	Jun. 30, 2018
Organization and operations
Organization and operations	1. Organization and operations Quanterix Corporation (the Company) is a life sciences company that has developed a next generation, ultra‑sensitive digital immunoassay platform that advances precision health for life sciences research and diagnostics. The Company’s platform enables customers to reliably detect protein biomarkers in extremely low concentrations in blood, serum and other fluids that, in many cases, are undetectable using conventional, analog immunoassay technologies. It also allows researchers to define and validate the function of novel protein biomarkers that are only present in very low concentrations and have been discovered using technologies such as mass spectrometry. These capabilities provide the Company’s customers with insight into the role of protein biomarkers in human health that has not been possible with other existing technologies and enable researchers to unlock unique insights into the continuum between health and disease. The Company is currently focusing its platform on protein detection and is also developing its Simoa technology to detect nucleic acids in biological samples. The Company currently markets the Simoa HD‑1 Analyzer, a fully automated immunoassay platform with multiplexing and custom assay capability, and related assay test kits and consumable materials. The Company launched a second immunoassay platform (Quanterix SR-X) in the fourth quarter of 2017 with a more compact footprint than the Simoa HD‑1 Analyzer and less automation designed for lower volume requirements while still allowing multiplexing and custom assay capability. The Company also performs research services on behalf of customers to apply the Simoa technology to specific customer needs. The Company’s primary customers are in the research use only market which includes academic and governmental research institutions, the research and development laboratories of pharmaceutical manufacturers, contract research organizations, and specialty research laboratories. The Company acquired Aushon Biosystems, Inc. (Aushon) in January 2018 and will market and sell Aushon developed instruments and biomarker assays. In addition, the Company plans to utilize the Aushon CLIA-certified laboratory to enhance the research service offering to customers. Initial Public Offering In December 2017, the Company completed its initial public offering (IPO) in which the Company sold 4,916,480 shares of its common stock at the initial public offering price of $15.00 per share. The Company’s common stock began trading on The Nasdaq Global Market on December 7, 2017. The aggregate net proceeds received from the IPO, net of underwriting discounts and commissions and offering expenses, was $65.6 million. Immediately prior to the completion of the IPO, all then outstanding shares of convertible preferred stock were converted into 14,185,744 shares of common stock. The related carrying value of shares of preferred stock and warrants in the aggregate amount of $143.3 million was reclassified as common stock and additional paid‑in capital. Additionally, the Company filed an amended and restated certificate of incorporation with the Secretary of State of the State of Delaware, effective December 11, 2017 to, among other things, change the authorized number of shares of common stock to 120,000,000 and the authorized number of shares of preferred stock to 5,000,000. Basis of Presentation The interim condensed consolidated financial statements are unaudited. The unaudited condensed consolidated financial statements reflect, in the opinion of our management, all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of financial position, results of operations, comprehensive loss and cash flows for each period presented in accordance with United States generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10‑Q and Article 10 of Regulation S-X. Accordingly, certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto included in our Annual Report on Form 10‑K for the year ended December 31, 2017 filed with the securities and Exchange Commission on March 19, 2018 (the 2017 Annual Report on form 10-K). The consolidated financial information as of December 31, 2017 has been derived from the audited 2017 consolidated financial statements included in our 2017 Annual Report on Form 10‑K. Reverse Stock Split On December 4, 2017, the Company effected a reverse stock split of its common stock at a ratio of 1‑for‑3.214. The shares of common stock subject to then outstanding stock options were adjusted accordingly to reflect the reverse stock split. All common stock and related per share amounts presented in these financial statements and related notes have been retroactively adjusted to reflect the 1‑for‑3.214 reverse stock split.

Significant accounting policies	6 Months Ended
Significant accounting policies	Jun. 30, 2018
Significant accounting policies
Significant accounting policies	2. Significant accounting policies Principles of consolidation The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and include the accounts of Quanterix Corporation and its wholly‑owned subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. In making those estimates and assumptions, the Company bases its estimates on historical experience and on various other assumptions believed to be reasonable. The Company’s significant estimates included in the preparation of the consolidated financial statements are related to revenue recognition, fair value of equity instruments, fair value of assets acquired and liabilities assumed in acquisitions, valuation allowances recorded against deferred tax assets, and stock‑based compensation. Actual results could differ from those estimates. Business combinations Under the acquisition method of accounting, the Company allocates the fair value of the total consideration transferred to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values on the date of acquisition. The fair values assigned, defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants, are based on estimates and assumptions determined by management. The excess consideration over the aggregate fair value of tangible and intangible assets, net of liabilities assumed, is recorded as goodwill. These valuations require significant estimates and assumptions, especially with respect to intangible assets. The Company typically uses the discounted cash flow method to value acquired intangible assets. This method requires significant management judgment to forecast future operating results and establish residual growth rates and discount factors. The estimates used to value and amortize intangible assets are consistent with the plans and estimates that are used to manage the business and are based on available historical information and industry estimates and averages. If the subsequent actual results and updated projections of the underlying business activity change compared with the assumptions and projections used to develop these values, the Company could experience impairment charges. In addition, the Company has estimated the economic lives of certain acquired assets and these lives are used to calculate depreciation and amortization expense. If estimates of the economic lives change, depreciation or amortization expenses could be accelerated or slowed. Recent accounting pronouncements The Company is considered to be an “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012, as amended (JOBS Act). The JOBS Act provides that an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards. Thus, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company has elected to avail itself of this extended transition period and, as a result, the Company will not be required to adopt new or revised accounting standards on the relevant dates on which adoption of such standards is required for other public companies so long as the Company remains an emerging growth company. In May 2014, the FASB issued ASU No. 2014‑09, Revenue from Contracts with Customers (Topic 606) (ASU 2014‑09). The FASB has issued several updates to the standard which (i) clarify the application of the principal versus agent guidance; (ii) clarify the guidance relating to performance obligations and licensing; (iii) clarify assessment of the collectability criterion, presentation of sales taxes, measurement date for non‑cash consideration and completed contracts at transaction; and (iv) clarify narrow aspects of ASC 606 or corrects unintended application of the guidance (collectively, the Revenue ASUs). The Revenue ASUs provide an accounting standard for a single comprehensive model for use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. Under Topic 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. Topic 606 also impacts certain other areas, such as the accounting for costs to obtain or fulfill a contract. The standard also requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The accounting standard is effective for the Company for the year ending December 31, 2019 and for interim periods within such year. Early adoption is permitted. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (the full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective method). The Company does not currently intend to early adopt the provisions of this accounting standard and currently intends to adopt the standard effective January 1, 2019. The Company is in the process of determining which adoption method will be utilized and assessing the effect of this accounting standard. The Company’s performance under the bioMérieux arrangement is not expected to be completed prior to the anticipated date of adoption on January 1, 2019, and the revenue recognition for this contract may be affected by Topic 606. The Company cannot predict at this time whether performance obligations under the arrangement with a diagnostic company will remain open at January 1, 2019. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842): Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-02). Under ASU 2016-02, lessees will be required to recognize a lease liability and a right-of-use asset for all leases (with the exception of short term leases) at the commencement date. Lessor accounting under ASU 2016-02 is largely unchanged. ASU 2016-02 is effective for the Company for the year ending December 31, 2020. Early adoption is permitted. Under ASU 2016-02, lessees (for capital and operating leases) and lessors (for sales-type, direct financing and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently evaluating the requirements of ASU 2016-02 and has not yet determined whether adoption of the standard will have a material impact on its consolidated financial statements. There have been no other material changes to the significant accounting policies and recent accounting pronouncements previously disclosed in the 2017 Annual Report on Form 10‑K.

Revenue recognition

6 Months Ended

Jun. 30, 2018

Revenue recognition

Revenue recognition

3. Revenue recognition

The Company recognizes revenue when (1) persuasive evidence of an arrangement exists, (2) shipment and installation, if applicable, has occurred or services have been rendered, (3) the price to the customer is fixed or determinable and (4) collection of the related receivable is reasonably assured. The Company primarily generates revenue from the sale of products and delivery of services, as well as under license and collaboration agreements. The Company’s product revenue includes the sale of instruments as well as assay kits and consumables which are used to perform tests on the instrument. The Company’s service revenue is generated from services performed in the Company’s Simoa Accelerator Lab under contracts to perform research services on behalf of customers and maintenance and support services.

Product revenue

Revenue for instrument sales is recognized upon installation at the customer’s location or upon transfer of title to the customer when installation is not required, which is generally the case with sales to distributors. In sales to end‑customers, the Company provides the installation service and often payment is tied to the completion of the installation service. When installation is required, the Company accounts for the instrument and installation service as one unit of accounting and recognizes revenue when installation is completed, assuming all other revenue recognition criteria are met. Instrument transactions often have multiple elements, as discussed below. Included with the purchase of an instrument is a one‑year assurance type product warranty assuring that the instrument is free of material defects and will function according to specifications. In addition, the sale of an instrument includes an implied warranty which is promised to the customer during the pre‑sales process, at the time that the sales quote is issued to the customer. The implied warranty is provided over the same one‑year period as the standard warranty. The services included in the implied warranty are the same as those included in the extended service contracts, and include two bi‑annual preventative maintenance service visits, minor hardware updates and software upgrades, additional training and troubleshooting which is beyond the scope of the standard product warranty. The implied warranty has been identified by the Company as a separate deliverable and unit of accounting. Consideration allocated to the implied one year service type warranty is recognized over the one year period of performance as service and other revenue as described below. Consideration allocated to any other elements is recognized as the goods are delivered or the services are performed.

Service and other revenue

Service revenue includes revenue from the implied one‑year service type warranty obligation, revenue from extended service contracts, research services performed on behalf of a customer in the Company’s Simoa Accelerator Lab, and other services that may be performed. Revenue for the implied one‑year service type warranty is initially deferred at the time of instrument revenue recognition and is recognized ratably over a 12‑month period starting on the date of instrument installation. Revenue for extended warranty contracts is recognized ratably over the service period. Revenue for research and development services and other services is generally recognized based on proportional performance of the contract, when the Company’s ability to complete project requirements is reasonably assured. Most of these services are completed in a short period of time from the receipt of the customer’s order. When significant risk exists in the Company’s ability to fulfill project requirements, revenue is recognized upon completion of the contract.

Collaboration and license revenue

Collaboration and license revenue relates to the Joint Development and License Agreement (JDLA) with bioMérieux SA (bioMérieux) as amended and restated in December 2016 by the Amended and Restated License Agreement (the 2016 Amendment) and the agreements with a diagnostics company. Refer to Note 11 of the 2017 Annual Report on Form 10‑K for a description of these arrangements and the Company’s revenue recognition policies for these agreements.

Multiple element arrangements

Many of our instrument sales involve the delivery of multiple products and services. The elements of an instrument sale typically include the instrument installation (when required), an implied one year service type warranty, and in some cases the Company may also sell assays, consumables, or other services. Revenue recognition for contracts with multiple deliverables is based on the individual units of accounting determined to exist in the contract. A delivered item is considered a separate unit of accounting when the delivered item has value to the customer on a stand‑alone basis. Items are considered to have stand‑alone value when they are sold separately by any vendor or when the customer could resell the item on a stand‑alone basis.

The consideration received is allocated among the separate units of accounting using the relative selling price method, and the applicable revenue recognition criteria are applied to each of the separate units. The Company determines the estimated selling price for deliverables within the arrangement using vendor‑specific objective evidence (VSOE) of selling price, if available. If VSOE is not available, the Company considers if third‑party evidence is available. If third‑party evidence of selling price or VSOE is not available, the Company uses its best estimate of selling price for the deliverable.

In order to establish VSOE of selling price, the Company must regularly sell the product or service on a standalone basis with a substantial majority priced within a relatively narrow range. If there are not a sufficient number of standalone sales such that VSOE of selling price cannot be determined, then the Company considers whether third party evidence can be used to establish selling price. Due to the lack of similar products and services sold by other companies within the industry, the Company has not established selling price using third‑party evidence.

For product and service sales, the Company determines its best estimate of selling price for instruments, consumables, services and assays using average selling prices over a rolling 12‑month period coupled with an assessment of market conditions, as VSOE and third‑party evidence cannot be established. The Company recognizes revenue for delivered elements only when it determines there are no uncertainties regarding customer acceptance.

Distributor transactions

In certain markets, the Company sells products and provides services to customers through distributors that specialize in life sciences products. In cases where the product is delivered to a distributor, revenue recognition generally occurs when title transfers to the distributor. The terms of sales transactions through distributors are generally consistent with the terms of direct sales to customers, except the distributors do not require the Company’s services to install the instrument at the end customer and perform the services for the customer that are beyond our standard warranty in the first year following the sale. These transactions are accounted for in accordance with the Company’s revenue recognition policy described herein.

Segment Information

Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision‑maker in deciding how to allocate resources and assess performance. The Company and the Company’s chief operating decision‑maker reviews the Company’s operations and manages its business as a single operating segment.

Net revenue by product and service line are as follows (in thousands):


	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017
Product revenue
Instrument and accessories	$	1,765	$	1,670	$	3,774	$	3,456
Consumable and other product		3,435		1,667		6,171		3,306
Total	$	5,200	$	3,337	$	9,945	$	6,762
Service and other revenue
Accelerator and CLIA Lab services	$	2,092	$	982	$	3,699	$	2,034
Other services		1,082		626		1,983		1,218
Total	$	3,174	$	1,608	$	5,682	$	3,252

The following table reflects total revenue (in thousands) by geography and as a percentage of total revenue, based on the billing address of our customers. North America consists of the United States, Canada and Mexico; EMEA consists of Europe, Middle East, and Africa; and Asia Pacific includes Japan, China, South Korea, Singapore, Malaysia and Australia.


	Three months ended June 30,								Six months ended June 30,
	2018				2017				2018				2017
North America	$	5,156	60	%	$	3,329	64	%	$	9,623	60	%	$	6,443	61	%
EMEA		2,766	32	%		1,558	30	%		5,241	32	%		3,226	31	%
Asia Pacific		721	8	%		326	6	%		1,300	8	%		882	8	%
Total	$	8,643	100	%	$	5,213	100	%	$	16,164	100	%	$	10,551	100	%

Net loss per share

6 Months Ended

Jun. 30, 2018

Net loss per share

Net loss per share

4. Net loss per share

Basic net loss per common share attributable to common stockholders is calculated by dividing the net loss attributable to common stockholders by the weighted‑average number of common shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted‑average number of common shares and potentially dilutive securities outstanding for the period determined using the treasury‑stock and if‑converted methods. For purposes of the diluted net loss per share calculation, preferred stock, unvested restricted common stock and stock options are considered to be potentially dilutive securities, but are excluded from the calculation of diluted net loss per share because their effect would be anti‑dilutive and therefore basic and diluted net loss per share were the same for all periods presented.

The following table sets forth the outstanding potentially dilutive securities that have been excluded in the calculation of diluted net loss per share because to do so would be anti‑dilutive (in common stock equivalent shares):


	June 30,
	2018	2017
Redeemable convertible preferred stock	—	14,176,025
Unvested restricted common stock and restricted stock units	150,843	268,757
Outstanding stock options	2,543,478	2,221,774
Outstanding warrants	76,041	120,663
Total	2,770,362	16,787,219

As of June 30, 2018 and 2017, the Company had an obligation to issue warrants to purchase an additional 93,341 shares of common stock and 300,000 shares of Series A‑3 Preferred Stock, respectively, to a vendor if a contract is terminated prior to a minimum purchase commitment being met. Upon completion of the IPO in December 2017, the warrants to purchase shares of Preferred Stock were converted to warrants to purchase shares of common stock at a 1‑for‑3.214 basis. No amounts are presented in the table above for this obligation to issue a warrant as the issuance of the warrant is not considered probable.

The Company’s redeemable convertible preferred stock was entitled to receive dividends based on dividends declared to common stockholders, thereby giving the preferred stockholders the right to participate in undistributed earnings of the Company above the stated dividend rate. However, preferred stockholders did not have a contractual obligation to share in the net losses of the Company. The Company operated in a net loss position for the three and six months ended June 30, 2017 and, therefore the Company’s accounting for basic and diluted earnings per share was unaffected by the participation rights of the preferred stockholders. The shares of preferred stock outstanding at June 30, 2017 were converted to shares of common stock at the time of the IPO on a 1-for-3.214 basis.

Fair value of financial instruments

6 Months Ended

Jun. 30, 2018

Fair value of financial instruments

Fair value of financial instruments

5. Fair value of financial instruments

ASC Topic 820, Fair Value Measurement (ASC 820), establishes a fair value hierarchy for instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs). Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability, and are developed based on the best information available in the circumstances.

ASC 820 identifies fair value as the exchange price, or exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a three‑tier fair value hierarchy that distinguishes between the following:

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 inputs are inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; and

Level 3 inputs are unobservable inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability.

The carrying amount reflected on the balance sheets for cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued liabilities approximated their fair values, due to the short‑term nature of these instruments. The carrying value of the long‑term debt approximates its fair value as the debt arrangement is based on interest rates the Company believes it could obtain for borrowings with similar terms. The Company has an investment in the preferred stock of a privately held company which is recorded within other non‑current assets on a cost basis. This cost method investment’s fair value has not been estimated as there are no identified events or changes in circumstances that would indicate a significant adverse effect on the fair value of the investment and to do so would be impractical.

Fair value measurements as of June 30, 2018 are as follows (in thousands):


			Quoted		Significant
			prices		other		Significant
			in active		observable		unobservable
			markets		inputs		inputs
Description	Total		(Level 1)		(Level 2)		(Level 3)
	(unaudited)
Financial assets
Cash equivalents	$	57,459	$	57,459	$	—	$	—
Total	$	57,459	$	57,459	$	—	$	—

Fair value measurements as of December 31, 2017 are as follows (in thousands):


			Quoted		Significant
			prices		other		Significant
			in active		observable		unobservable
			markets		inputs		inputs
Description	Total		(Level 1)		(Level 2)		(Level 3)
Financial assets
Cash equivalents	$	78,182	$	78,182	$	—	$	—
Total	$	78,182	$	78,182	$	—	$	—

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Inventory

6 Months Ended

Jun. 30, 2018

Inventory

Inventory

6. Inventory

Inventory consists of the following (in thousands):


	June 30,		December 31,
	2018		2017
Raw materials	$	2,326	$	1,032
Work in process		1,634		968
Finished goods		1,526		1,571
Total	$	5,486	$	3,571

Inventory comprises commercial instruments, assays, and the materials required to manufacture assays.

Investments	6 Months Ended
Investments	Jun. 30, 2018
Investments
Investments	7. Investments During the third quarter of 2016, the Company purchased a minority interest in preferred stock in a privately held company for $0.3 million. The investment is recorded on a cost basis in other non-current assets on the accompanying balance sheets as the Company does not have a controlling interest, does not have the ability to exercise significant influence over the privately held company and the fair value of this equity investment is not readily determinable. The Company performs an impairments analysis at each reporting period to determine if the carrying value must be reduced due to a decrease in the value of the investment, which includes consideration of whether an event or change in circumstances has occurred that may have a significant adverse effect on the fair value of the investment. The Company has determined there was no impairment during the six months ended June 30, 2018 or in any prior period.

Other accrued expenses

6 Months Ended

Jun. 30, 2018

Other accrued expenses

Other accrued expenses

8. Other accrued expenses

Other accrued expenses consist of the following (in thousands):


	June 30,		December 31,
	2018		2017
Accrued inventory	$	465	$	835
Accrued royalties		250		221
Accrued professional services		607		346
Accrued development costs		1,350		1,559
Accrued acquisition payment		800		—
Accrued other		709		599
Total accrued expenses	$	4,181	$	3,560

Redeemable convertible preferred stock	6 Months Ended
Redeemable convertible preferred stock	Jun. 30, 2018
Redeemable convertible preferred stock.
Redeemable convertible preferred stock	9. Redeemable convertible preferred stock The Company has authorized preferred stock amounting to 5,000,000 shares as of June 30, 2018 and December 31, 2017. The authorized preferred stock was classified under stockholders’ equity at June 30, 2018 and December 31, 2017. Prior to the IPO in December 2017, the Company had classes of preferred stock outstanding. These shares of preferred stock were converted to shares of common stock at the time of the IPO on 1-for-3.214 shares basis. The reconciliation of net loss attributable to common shareholders in the consolidated statement of operations for the three and six months ended June 30, 2017 includes an adjustment for accretion of preferred stock to redemption value.

Warrants, stock-based compensation, stock options, restricted stock and restricted stock units

6 Months Ended

Jun. 30, 2018

Warrants, stock-based compensation, stock options, restricted stock and restricted stock units

Warrants, stock-based compensation, stock options, restricted stock and restricted stock units

10. Warrants, stock-based compensation, stock options, restricted stock and restricted stock units

Warrants

During the six months ended June 30, 2018, the Company issued warrants to purchase common stock to a consultant providing services for the Company. Additionally, during the six months ended June 30, 2018, warrants were exercised by a holder on a net, non-cash, basis. A summary of warrant activity is as follows:


		Weighted average
	Shares	exercise price
Warrants outstanding as of December 31, 2017	86,090	9.14
Granted	10,000	21.00
Exercised	(20,049)	3.35
Warrants outstanding as of June 30, 2018	76,041	12.23

Stock-based compensation

Share‑based compensation expense for all stock awards consists of the following (in thousands):


	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017
Cost of product revenue	$	19	$	6	$	29	$	11
Cost of service and other revenue		51		13		83		19
Research and development		138		52		209		73
General and administrative		682		479		1,205		705
Total	$	890	$	550	$	1,526	$	808

As of June 30, 2018, under the 2007 Stock Option and Grant Plan (the 2007 Plan), options to purchase 2,092,449 shares of our common stock were outstanding, 729,232 shares of our common stock had been issued and were outstanding pursuant to the exercise of options, 1,128,975 shares of our common stock had been issued and were outstanding pursuant to restricted or unrestricted stock awards, and no shares of our common stock were available for future awards. In connection with the completion of the IPO, the Company terminated the 2007 Plan.

In December 2017, the Company adopted the 2017 Employee, Director and Consultant Equity Incentive Plan (the 2017 Plan), under which it may grant incentive stock options, non‑qualified stock options, restricted stock, and other stock‑based awards. As of December 31, 2017, the 2017 Plan allowed for the issuance of up to 1,042,314 shares or options to purchase shares of common stock plus up to 2,490,290 shares of our common stock represented by awards granted under the 2007 Plan that are forfeited, expire or are cancelled without delivery of shares or which result in the forfeiture of shares of common stock back to the Company on or after the date the 2017 Plan becomes effective. As of June 30, 2018, 529,480 shares were available for grant under the 2017 Plan.

In addition, the 2017 Plan contains an “evergreen” provision, which allows for an annual increase in the number of shares of common stock available for issuance under the 2017 Plan on the first day of each fiscal year during the period beginning in fiscal year 2019 and ending in fiscal year 2027. The annual increase in the number of shares shall be equal to the lowest of: 4% of the number of shares of common stock outstanding as of such date; and an amount determined by the Company’s Board of Directors or Compensation Committee.

In December 2017, the Company adopted the 2017 Employee Stock Purchase Plan (the 2017 ESPP). As of June 30, 2018, the 2017 ESPP allowed for the issuance of up to 427,305 shares of common stock and 427,305 shares were available for grant under the 2017 ESPP.

The 2017 ESPP contains an “evergreen” provision, which allows for an increase on the first day of each fiscal year beginning with fiscal year 2018. The increase in the number of shares shall be equal to the lowest of: 1% of the number of shares of common stock outstanding on the last day of the immediately preceding fiscal year or an amount determined by the Company’s Board of Directors or Compensation Committee. The number of shares available for grant under the 2017 ESPP increased by 218,842 on January 1, 2018 due to this provision.

Stock options

Under the 2007 and 2017 Plans, stock options may not be granted with exercise prices of less than fair market value on the date of the grant. Options generally vest ratably over a four‑year period with 25% vesting on the first anniversary and the remaining 75% vesting ratably on a monthly basis over the remaining three years. These options expire ten years after the grant date. Activity under the 2007 and the 2017 Plans was as follows:


		Weighted-		Remaining	Aggregate
		average		contractual	intrinsic
		exercise		life	value
	Options	price		(in years)	(in thousands)
Outstanding at December 31, 2017	2,249,843	$	6.05	7.8	$	34,695
Granted	508,418	$	19.35
Exercised	(157,394)	$	2.42
Cancelled or forfeited	(57,389)	$	11.64
Outstanding at June 30, 2018	2,543,478	$	8.80	7.97	$	16,560
Vested and expected to vest at June 30, 2018	2,543,478	$	8.80	7.97	$	16,560
Exercisable at June 30, 2018	1,127,001	$	4.91	6.59	$	10,648

Using the Black-Scholes option pricing model, the weighted-average fair value of options granted to employees and directors during the six months ended June 30, 2018 and 2017 was $8.43 and $4.50 per share, respectively. The expense related to awards granted to employees was $0.6 million and $1.1 million for the three and six months ended June 30, 2018, respectively. The expense related to awards granted to employees was $0.4 million and $0.5 million for the three and six months ended June 30, 2017, respectively. The intrinsic value of stock options exercised was $1.5 million and $2.5 million for the three and six months ended June 30, 2018, respectively. The intrinsic value of stock options exercised was $0.1 million and $0.2 million for the three and six months ended June 30, 2017, respectively. Activity related to non-employee awards was not material to the three and six months ended June 30, 2018 and 2017.

At June 30, 2018, there was $7.7 million of total unrecognized compensation cost related to unvested stock options, which is expected to be recognized over the remaining weighted‑average vesting period of 3.3 years.

The fair value of stock options granted to employees and directors for their services on the Company’s Board of Directors is estimated on the grant date using the Black‑Scholes option‑pricing model, based on the assumptions noted in the following table:


	Six months ended
	June 30,
	2018		2017
Risk-free interest rate	2.7	%	2.0	%
Expected dividend yield	None		None
Expected term (in years)	6.0		6.0
Expected volatility	41.4	%	52.0	%

Restricted stock

Restricted common stock awards represent shares of common stock issued to employees subject to forfeiture if the vesting conditions are not satisfied. In December 2014, the Company issued 78,912 shares of restricted common stock to a director of the Company under the 2007 Plan. Under the terms of the agreement, shares of common stock issued are subject to a four year vesting schedule. Vesting occurs periodically at specified time intervals and specified percentages. In January 2015, the Company issued 781,060 shares of restricted common stock to an executive of the Company under the 2007 Plan. The majority of these shares were issued subject to a four year vesting schedule with 25% vesting on the first anniversary and the remaining vesting 75% ratably on a monthly basis over the remaining three years, while another portion was issued subject to performance based vesting. The vesting of performance based awards is dependent upon achievement of specified financial targets of the Company. The majority of the performance criteria were achieved during the years ended December 31, 2016 and 2015 and the remaining unvested awards with performance conditions are not material. No restricted stock awards were granted during the six months ended June 30, 2018. A summary of restricted stock activity is as follows:


		Weighted-average
		grant date
		fair value
	Shares	per share
Unvested restricted common stock as of December 31, 2017	177,192	$	3.11
Vested	(99,528)	$	3.10
Unvested restricted common stock as of June 30, 2018	77,664	$	3.12

The expense related to awards granted to employees and directors was $0.1 million and $0.3 million for the three and six months ended June 30, 2018, respectively. The expense related to awards granted to employees and directors was $0.1 million and $0.3 million for the three and six months ended June 30, 2017, respectively.

At June 30, 2018, there was $0.2 million of total unrecognized compensation cost related to unvested restricted stock, which is expected to be recognized over the remaining weighted‑average vesting period of 0.5 years.

The aggregate fair value of restricted stock awards that vested during the six months ended June 30, 2018, based on estimated fair values of the stock underlying the restricted stock awards on the day of vesting, was $1.8 million.

Restricted stock units

Restricted stock units represent the right to receive shares of common stock upon meeting specified vesting requirements. In the six months ended June 30, 2018, the Company issued 73,179 restricted stock units to employees of the Company under the 2017 Plan. Under the terms of the agreements, 54,979 of the restricted stock units issued are subject to a four year vesting schedule with 25% vesting on the first anniversary and the remaining vesting 75% ratably on a monthly basis over the remaining three years and 18,200 of the restricted stock units issued are subject to vesting with 50% vesting on December 31, 2018 and 50% vesting on December 31, 2019. A summary of restricted stock unit activity is as follows:


		Weighted-average
		grant date
		fair value
	Shares	per share
Unvested restricted stock units as of December 31, 2017	—		—
Granted	73,179	$	19.05
Unvested restricted stock units as of June 30, 2018	73,179	$	19.05

The expense related to awards granted to employees and directors was $0.1 million for the three and six months ended June 30, 2018.

At June 30, 2018, there was $1.3 million of total unrecognized compensation cost related to unvested restricted stock, which is expected to be recognized over the remaining weighted‑average vesting period of 3.4 years.

Commitments and contingencies

6 Months Ended

Jun. 30, 2018

Commitments and contingencies

Commitments and contingencies

11. Commitments and contingencies

License agreements

Tufts University

In June 2007, the Company entered into a license agreement (the License Agreement) for certain intellectual property with Tufts University (Tufts). Tufts is a related party to the Company due to Tuft’s equity ownership in the Company and because a board member of the Company’s Board of Directors was affiliated with Tufts. The License Agreement, which was subsequently amended, is exclusive and sub licensable, and will continue in effect on a country by country basis as long as there is a valid claim of a licensed patent in a country. The Company was committed to pay license and maintenance fees, prior to commercialization, in addition to low single digit royalties on direct sales and services and a royalty on sublicense income. During the three months ended June 30, 2018 and 2017, and the six months ended June 30, 2018 and 2017, the Company recorded royalty expense of $0.2 million, $0.1 million, $0.3 million and $0.2 million, respectively, in cost of product revenue on the consolidated statements of operations.

Other licenses

During the year ended December 31, 2012, the Company entered into a license agreement for certain intellectual property with a third party. The non‑exclusive, non‑sublicenseable third party’s license provides the Company access to certain patents specifically for protein detection, and shall be in effect until the expiration of the last licensed patent. In consideration for these rights, the Company committed to certain license fees, milestone payments, minimum annual royalties and a mid‑single digit royalty. The Company is required to make mid‑single digit royalty payments on net sales of products and services which utilize the licensed technology. The Company must pay the greater of calculated royalties on net sales or an annual minimum royalty of $50 thousand. During the three months ended June 30, 2018 and 2017, and the six months ended June 30, 2018 and 2017, the Company recorded royalty expense of less than $0.1 million, $0.1 million, less than $0.1 million and $0.2 million, respectively, in cost of product revenue on the consolidated statements of operations.

Lease commitments

During the year ended December 31, 2014, the Company entered into a lease agreement for the Company’s current corporate headquarters with a lease term that expires in June 2020 which can be extended to June 2023. The lease agreement contains a period of free rent and annual increases to rental amounts.

In connection with the acquisition of Aushon in January 2018, the Company assumed the existing Aushon lease for facilities in Billerica, Massachesetts. The lease expires in February 2021.

Rent expense is recognized straight‑line over the course of the lease term. As of June 30, 2018, $0.1 million of deferred rent expense was recorded in other non‑current liabilities, and less than $0.1 million was recorded in other accrued expenses.

As of June 30, 2018, the minimum future rent payments under the lease agreements are as follows (in thousands):


Years ending December 31:
Remainder of 2018	$	682
2019		1,399
2020		814
2021		35
	$	2,930

The Company recorded $0.4 million, $0.3 million, $0.7 million and $0.6 million in rent expense for the three months ended June 30, 2018 and 2017, and the six months ended June 30, 2018 and 2017, respectively.

Development and supply agreement

Through the Company’s development agreement with STRATEC Biomedical, as amended in December 2016, the parties agreed on additional development services for an additional fee, which is payable when the additional development is completed. A total of $1.5 million is payable to STRATEC upon completion of the development activities. This amount is being recorded to research and development expense and accrued expenses as the services are performed. The services are expected to be completed during the year ending December 31, 2018. Substantive efforts related to these additional development activities started in the first quarter of 2017.

The Company’s supply agreement with STRATEC Biomedical requires the Company to purchase a minimum number of commercial units over a seven‑year period ending in May 2021. If the Company were to fail to purchase a required number of commercial units, the Company would be obligated to pay termination costs and in addition a fee based on the shortfall of commercial units purchased compared to the required minimum amount. Based on the number of commercial instruments purchased as of June 30, 2018, assuming no additional commercial units were purchased, this fee would equal $11.7 million. The amount the Company could be obligated to pay under the minimum purchase commitment is reduced as each commercial unit is purchased. Also, if the Company terminates the Supply Agreement under certain circumstances and has not purchased a required number of commercial units, it would be obligated to issue warrants to purchase 93,341 shares of common stock (the Supply Warrants) at $0.003214 per share. The Company believes that it will purchase sufficient units to meet the requirements of the minimum purchase commitment and, therefore, has not accrued for any of the potential cash consideration. The Supply Warrants are accounted for at fair value; however, the fair value of the Supply Warrants as of June 30, 2018 and December 31, 2017 was insignificant as there was a low probability of the warrants being issued.

Legal contingencies

The Company is subject to claims in the ordinary course of business; however, the Company is not currently a party to any pending or threatened litigation, the outcome of which would be expected to have a material adverse effect on its financial condition or the results of its operations. The Company accrues for contingent liabilities to the extent that the liability is probable and estimable.

Notes payable

6 Months Ended

Jun. 30, 2018

Notes payable

Notes payable

12. Notes payable

Loan agreement

On April 14, 2014, the Company executed a Loan Agreement with a lender, as subsequently amended in March 2015, January 2016 and March 2017. As of June 30, 2018, there were no additional amounts available to borrow under the debt facility. The interest rate on this term loan is variable based on a calculation of the prime rate less 5.25% with a minimum interest rate of 8%. Interest is paid monthly beginning the month following the borrowing date. At loan inception and in connection with the amendments, the Company issued the lender warrants to purchase shares of stock. The Loan Agreement also contains prepayment penalties and an end of term charge. Fees incurred in execution of the agreements, and the fair value of warrants on the date of grant were accounted for as a reduction in the book value of debt and accreted through interest expense, using the effective interest rate method, over the term of the debt.

The end of term charge of $0.5 million, and principal payments of $1.4 million were paid during the six months ended June 30, 2018. Under the terms of the agreement, principal payments were delayed until September 2018. The Company voluntarily made principal payments in the months of March, April and May, 2018. No principal payments were made in June, July or August, 2018. The Company expects to resume paying principal on the loan in September, 2018. As of June 30, 2018 the remaining loan balance is classified as a current liability since all principal payments are due within twelve months of the balance sheet date.

Debt payment obligations due based on principal payments are as follows (in thousands):


Years ending December 31:
Remainder of 2018	$	1,843
2019		5,845
	$	7,688

Non‑cash interest expense related to debt discount amortization and accretion of end of term fees was less than $0.1 million, less than $0.1 million, $0.1 million and $0.1 million for the three months ended June 30, 2018 and 2017, and the six months ended June 30, 2018 and 2017, respectively.

Collaboration and license arrangements	6 Months Ended
Collaboration and license arrangements	Jun. 30, 2018
Collaboration and license arrangements
Collaboration and license arrangements	13. Collaboration and license arrangements Joint development and license agreement (JDLA) The Company’s JDLA with bioMérieux, a related party, was amended in 2016. Following the amendment, a total of $3.2 million of consideration was assigned to the deliverables and collaboration activities outlined in the amendment to the JDLA. The consideration of $3.2 million will be recognized over the performance period which began in the fourth quarter 2016 and is expected to be completed in the year ending December 31, 2019. The Company recognized revenue of $0.3 million and $0.5 million for the three and six months ended June 30, 2018, respectively, as collaboration revenue and as of June 30, 2018, $1.6 million of arrangement consideration remains in deferred revenue. The Company recognized revenue of $0.3 million and $0.5 million for the three and six months ended June 30, 2017, respectively, as collaboration revenue. Evaluation and option agreements and license agreement In 2015, the Company entered into three agreements, for three separate fields, with a diagnostic company for the evaluation of the Company’s Simoa technology. These agreements each allowed for the option to negotiate a license agreement. In return, the Company received non‑refundable payments totaling $2.0 million. In December 2016, the diagnostic company exercised one of its options and the parties entered into a license agreement in one of the fields. This agreement has a one‑time non‑refundable license fee of $1.0 million and the right to receive running low single digit royalties on licensed products. The negotiation periods for the other two agreements were extended and the negotiations remain ongoing. Upon execution of the license in one of the fields in December 2016, the $1.0 million license fee, in addition to the $0.8 million allocated to the option for this field, resulted in a total of $1.8 million of consideration being recognized as revenue as there were no remaining undelivered performance obligations. Because the negotiations remain ongoing with respect to the other two fields, the consideration allocated to these options of $1.2 million has been deferred and is recorded as deferred revenue as of June 30, 2018 and December 31, 2017.

Business combinations

6 Months Ended

Jun. 30, 2018

Business combinations

Business combinations

14. Business combinations

On January 30, 2018, the Company completed the acquisition of Aushon pursuant to an Agreement and Plan of Merger dated January 30, 2018 (the “Aushon Acquisition”). The Company acquired Aushon to complement its existing product line, improve its existing research and development capabilities in assay development and software engineering, and expand its customer base. The Aushon Acquisition has been accounted for as a business combination and, in accordance with ASC 805, the Company has recorded the assets acquired and liabilities assumed at their respective fair values as of the acquisition date.

In connection with the closing of the Aushon Acquisition, the Company paid $3.2 million at closing, and an additional $0.8 million in July, 2018, the six-month anniversary following the acquisition date.

The purchase price allocation is considered preliminary, and additional adjustments may be recorded during the allocation period in accordance with ASC 805. The purchase price allocation will be finalized as the Company receives additional information relevant to the acquisition, including the final valuation and reconciliation of the assets purchased, including tangible and intangible assets, and liabilities assumed. The following table presents the preliminary allocation of the purchase consideration for the transaction as of January 30, 2018 including the contingent consideration and the preliminary allocation of the purchase consideration (in thousands):


Fair value of consideration transferred:
Cash	$	3,200
Obligation to issue cash		800
Total acquisition consideration	$	4,000

Fair value of assets acquired and liabilities assumed:


Cash and cash equivalents	$	199
Accounts receivable		210
Inventory		828
Prepaid expenses		71
Property and equipment and other non-current assets		180
Intangible Assets		2,950
Goodwill		1,308
Total assets acquired		5,746
Contractual obligations		(1,155)
Accounts payable and accrued liabilities		(591)
Net assets acquired	$	4,000

The intangible assets identified in the purchase price allocation discussed above include developed technology, trade names and customer relationships. Trade names are amortized over the useful life on a straight-line basis, while developed technology and customer relationships are amortized over their respective useful lives on an accelerated basis reflecting the period of expected derived benefits of the underlying assets. Developed technology consists of products that have reached technological feasibility and trade names represent acquired company and product names. To value the developed technology and trade name assets, the Company utilized a relief from royalty method. Under the methodology, fair value is calculated as the discounted cash flow savings accruing to the owner for not having to pay the royalty. Key assumptions included expected revenue attributable to the assets, royalty rates, discount rate and estimated asset lives. Customer relationships represent the underlying relationships with certain customers to provide ongoing services and continued product sale opportunities. The Company utilized excess earnings methodology to derive the fair value of the customer relationships. Key assumptions included expected attrition of customers rates, operating income margins and discount rate. The Company used a risk-adjusted discount rate of 14.4% in determining the fair value of the intangible assets.

The goodwill recorded as a result of the Aushon Acquisition represents the strategic benefits of growing the Company's product portfolio and the expected revenue growth from increased market penetration from future products and customers.

The Company incurred a total of $0.1 million in transaction costs in connection with the transaction, which were included in selling, general and administrative expense within the consolidated statement of operations for the six months ended June 30, 2018.

Goodwill and Acquired Intangible Assets

6 Months Ended

Jun. 30, 2018

Goodwill and Acquired Intangible Assets

Goodwill and Acquired Intangible Assets

15. Goodwill and Acquired Intangible Assets

As of June 30, 2018 the carrying amount of goodwill was $1.3 million. The following is a rollforward of our goodwill balance (in thousands):


	Goodwill
Balance as of December 31, 2017	$	—
Goodwill acquired		1,308
Balance as of June 30, 2018	$	1,308

Purchased intangible assets consist of the following (in thousands):


		June 30, 2018
	Estimated
	Useful	Gross				Net
	Life	Carrying		Accumulated		Carrying
	(in years)	Value		Amortization		Value
Developed technology	7	$	1,650	$	(172)	$	1,478
Customer relationships	10		1,250		(95)		1,155
Trade names	3		50		(7)		43
Total		$	2,950	$	(274)	$	2,676

The Company recorded amortization expense of $0.2 million and $0.3 million, for the three and six months ended June 30, 2018, respectively. No amortization expense was recognized for the three and six months ended June 30, 2017. Amortization relating to developed technology is recorded within research and development expense, amortization of customer relationships is recorded within sales and marketing expenses, and amortization of trade names is recorded within general and administrative expenses.

Future estimated amortization expense of acquired intangibles as of June 30, 2018 is as follows (in thousands):


Remainder of 2018	$	328
2019		582
2020		500
2021		403
2022		320
Thereafter		543

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Related party transactions	6 Months Ended
Related party transactions	Jun. 30, 2018
Related party transactions
Related party transactions	16. Related party transactions bioMérieux is a customer through its Joint Development and License Agreement and also a holder of the Company’s common stock. bioMérieux formerly also had a designee on the Company’s Board of Directors. The Company recognized revenue related to the JDLA with bioMérieux of $0.3 million, $0.3 million, $0.5 million and $0.5 million in the three months ended June 30, 2018 and 2017, and the six months ended June 30, 2018 and 2017, respectively, from bioMérieux. The Company also had deferred revenue of $1.6 million and $2.1 million at June 30, 2018 and December 31, 2017, respectively. The Company entered into a license agreement (the License Agreement) for certain intellectual property with Tufts University (Tufts). Tufts is a related party to the Company due to Tuft’s equity ownership in the Company and because a member of the Company’s Board of Directors was affiliated with Tufts. During the three months ended June 30, 2018 and 2017 and the six months ended June 30, 2018 and 2017, the Company recorded royalty expense of $0.2 million, $0.1 million, $0.3 million and $0.2 million, respectively, in cost of product revenue on the consolidated statements of operations and comprehensive loss. During the year ended December 31, 2017, Harvard University became a related party. Revenue recorded from sales to Harvard University were less than $0.1 million for the three and six months ended June 30, 2018.

Subsequent events	6 Months Ended
Subsequent events	Jun. 30, 2018
Subsequent events
Subsequent events	17. Subsequent events The Company has evaluated, for potential recognition and disclosure, events that occurred prior to the date at which the condensed consolidated financial statements were available to be issued. There were no material subsequent events.

Significant accounting policies (Policies)	6 Months Ended
Significant accounting policies (Policies)	Jun. 30, 2018
Significant accounting policies
Principles of consolidation	Principles of consolidation The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and include the accounts of Quanterix Corporation and its wholly‑owned subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation.
Use of estimates	Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. In making those estimates and assumptions, the Company bases its estimates on historical experience and on various other assumptions believed to be reasonable. The Company’s significant estimates included in the preparation of the consolidated financial statements are related to revenue recognition, fair value of equity instruments, fair value of assets acquired and liabilities assumed in acquisitions, valuation allowances recorded against deferred tax assets, and stock‑based compensation. Actual results could differ from those estimates.
Business combinations	Business combinations Under the acquisition method of accounting, the Company allocates the fair value of the total consideration transferred to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values on the date of acquisition. The fair values assigned, defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants, are based on estimates and assumptions determined by management. The excess consideration over the aggregate fair value of tangible and intangible assets, net of liabilities assumed, is recorded as goodwill. These valuations require significant estimates and assumptions, especially with respect to intangible assets. The Company typically uses the discounted cash flow method to value acquired intangible assets. This method requires significant management judgment to forecast future operating results and establish residual growth rates and discount factors. The estimates used to value and amortize intangible assets are consistent with the plans and estimates that are used to manage the business and are based on available historical information and industry estimates and averages. If the subsequent actual results and updated projections of the underlying business activity change compared with the assumptions and projections used to develop these values, the Company could experience impairment charges. In addition, the Company has estimated the economic lives of certain acquired assets and these lives are used to calculate depreciation and amortization expense. If estimates of the economic lives change, depreciation or amortization expenses could be accelerated or slowed.
Recent accounting pronouncements	Recent accounting pronouncements The Company is considered to be an “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012, as amended (JOBS Act). The JOBS Act provides that an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards. Thus, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company has elected to avail itself of this extended transition period and, as a result, the Company will not be required to adopt new or revised accounting standards on the relevant dates on which adoption of such standards is required for other public companies so long as the Company remains an emerging growth company. In May 2014, the FASB issued ASU No. 2014‑09, Revenue from Contracts with Customers (Topic 606) (ASU 2014‑09). The FASB has issued several updates to the standard which (i) clarify the application of the principal versus agent guidance; (ii) clarify the guidance relating to performance obligations and licensing; (iii) clarify assessment of the collectability criterion, presentation of sales taxes, measurement date for non‑cash consideration and completed contracts at transaction; and (iv) clarify narrow aspects of ASC 606 or corrects unintended application of the guidance (collectively, the Revenue ASUs). The Revenue ASUs provide an accounting standard for a single comprehensive model for use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. Under Topic 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. Topic 606 also impacts certain other areas, such as the accounting for costs to obtain or fulfill a contract. The standard also requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The accounting standard is effective for the Company for the year ending December 31, 2019 and for interim periods within such year. Early adoption is permitted. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (the full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective method). The Company does not currently intend to early adopt the provisions of this accounting standard and currently intends to adopt the standard effective January 1, 2019. The Company is in the process of determining which adoption method will be utilized and assessing the effect of this accounting standard. The Company’s performance under the bioMérieux arrangement is not expected to be completed prior to the anticipated date of adoption on January 1, 2019, and the revenue recognition for this contract may be affected by Topic 606. The Company cannot predict at this time whether performance obligations under the arrangement with a diagnostic company will remain open at January 1, 2019. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842): Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-02). Under ASU 2016-02, lessees will be required to recognize a lease liability and a right-of-use asset for all leases (with the exception of short term leases) at the commencement date. Lessor accounting under ASU 2016-02 is largely unchanged. ASU 2016-02 is effective for the Company for the year ending December 31, 2020. Early adoption is permitted. Under ASU 2016-02, lessees (for capital and operating leases) and lessors (for sales-type, direct financing and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently evaluating the requirements of ASU 2016-02 and has not yet determined whether adoption of the standard will have a material impact on its consolidated financial statements. There have been no other material changes to the significant accounting policies and recent accounting pronouncements previously disclosed in the 2017 Annual Report on Form 10‑K.

Revenue recognition (Tables)

6 Months Ended

Jun. 30, 2018

Revenue recognition

Schedule of net revenue by product and service line

Net revenue by product and service line are as follows (in thousands):


	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017
Product revenue
Instrument and accessories	$	1,765	$	1,670	$	3,774	$	3,456
Consumable and other product		3,435		1,667		6,171		3,306
Total	$	5,200	$	3,337	$	9,945	$	6,762
Service and other revenue
Accelerator and CLIA Lab services	$	2,092	$	982	$	3,699	$	2,034
Other services		1,082		626		1,983		1,218
Total	$	3,174	$	1,608	$	5,682	$	3,252

Schedule of total revenue by geography and as a percentage of total revenue


	Three months ended June 30,								Six months ended June 30,
	2018				2017				2018				2017
North America	$	5,156	60	%	$	3,329	64	%	$	9,623	60	%	$	6,443	61	%
EMEA		2,766	32	%		1,558	30	%		5,241	32	%		3,226	31	%
Asia Pacific		721	8	%		326	6	%		1,300	8	%		882	8	%
Total	$	8,643	100	%	$	5,213	100	%	$	16,164	100	%	$	10,551	100	%

Net loss per share (Tables)

6 Months Ended

Jun. 30, 2018

Net loss per share

Schedule of outstanding potentially dilutive securities that have been excluded in the calculation of diluted net loss per share


	June 30,
	2018	2017
Redeemable convertible preferred stock	—	14,176,025
Unvested restricted common stock and restricted stock units	150,843	268,757
Outstanding stock options	2,543,478	2,221,774
Outstanding warrants	76,041	120,663
Total	2,770,362	16,787,219

Fair value of financial instruments (Tables)

6 Months Ended

Jun. 30, 2018

Fair value of financial instruments

Schedule of fair value measurements

Fair value measurements as of June 30, 2018 are as follows (in thousands):


			Quoted		Significant
			prices		other		Significant
			in active		observable		unobservable
			markets		inputs		inputs
Description	Total		(Level 1)		(Level 2)		(Level 3)
	(unaudited)
Financial assets
Cash equivalents	$	57,459	$	57,459	$	—	$	—
Total	$	57,459	$	57,459	$	—	$	—

Fair value measurements as of December 31, 2017 are as follows (in thousands):


			Quoted		Significant
			prices		other		Significant
			in active		observable		unobservable
			markets		inputs		inputs
Description	Total		(Level 1)		(Level 2)		(Level 3)
Financial assets
Cash equivalents	$	78,182	$	78,182	$	—	$	—
Total	$	78,182	$	78,182	$	—	$	—

Inventory (Tables)

6 Months Ended

Jun. 30, 2018

Inventory

Summary of inventory

Inventory consists of the following (in thousands):


	June 30,		December 31,
	2018		2017
Raw materials	$	2,326	$	1,032
Work in process		1,634		968
Finished goods		1,526		1,571
Total	$	5,486	$	3,571

Other accrued expenses (Tables)

6 Months Ended

Jun. 30, 2018

Other accrued expenses

Summary of other accrued expenses

Other accrued expenses consist of the following (in thousands):


	June 30,		December 31,
	2018		2017
Accrued inventory	$	465	$	835
Accrued royalties		250		221
Accrued professional services		607		346
Accrued development costs		1,350		1,559
Accrued acquisition payment		800		—
Accrued other		709		599
Total accrued expenses	$	4,181	$	3,560

Warrants, stock-based compensation, stock options, restricted stock and restricted stock units (Tables)

6 Months Ended

Jun. 30, 2018

Warrants, stock-based compensation, stock options, restricted stock and restricted stock units

Summary of warrant activity


		Weighted average
	Shares	exercise price
Warrants outstanding as of December 31, 2017	86,090	9.14
Granted	10,000	21.00
Exercised	(20,049)	3.35
Warrants outstanding as of June 30, 2018	76,041	12.23

Summary of share-based compensation expense for all stock awards


	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017
Cost of product revenue	$	19	$	6	$	29	$	11
Cost of service and other revenue		51		13		83		19
Research and development		138		52		209		73
General and administrative		682		479		1,205		705
Total	$	890	$	550	$	1,526	$	808

Summary of stock option activity


		Weighted-		Remaining	Aggregate
		average		contractual	intrinsic
		exercise		life	value
	Options	price		(in years)	(in thousands)
Outstanding at December 31, 2017	2,249,843	$	6.05	7.8	$	34,695
Granted	508,418	$	19.35
Exercised	(157,394)	$	2.42
Cancelled or forfeited	(57,389)	$	11.64
Outstanding at June 30, 2018	2,543,478	$	8.80	7.97	$	16,560
Vested and expected to vest at June 30, 2018	2,543,478	$	8.80	7.97	$	16,560
Exercisable at June 30, 2018	1,127,001	$	4.91	6.59	$	10,648

Summary of fair value assumptions of stock options granted to employees and directors for their services on the Company's Board of Directors


	Six months ended
	June 30,
	2018		2017
Risk-free interest rate	2.7	%	2.0	%
Expected dividend yield	None		None
Expected term (in years)	6.0		6.0
Expected volatility	41.4	%	52.0	%

Summary of restricted stock activity


		Weighted-average
		grant date
		fair value
	Shares	per share
Unvested restricted common stock as of December 31, 2017	177,192	$	3.11
Vested	(99,528)	$	3.10
Unvested restricted common stock as of June 30, 2018	77,664	$	3.12

Summary of restricted stock units activity


		Weighted-average
		grant date
		fair value
	Shares	per share
Unvested restricted stock units as of December 31, 2017	—		—
Granted	73,179	$	19.05
Unvested restricted stock units as of June 30, 2018	73,179	$	19.05

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

+ References + Details

Commitments and contingencies (Tables)

6 Months Ended

Jun. 30, 2018

Commitments and contingencies

Schedule of minimum future rent payments under the lease agreement

As of June 30, 2018, the minimum future rent payments under the lease agreements are as follows (in thousands):


Years ending December 31:
Remainder of 2018	$	682
2019		1,399
2020		814
2021		35
	$	2,930

Notes payable (Tables)

6 Months Ended

Jun. 30, 2018

Notes payable

Schedule of debt payment obligations due based on principal payments

Debt payment obligations due based on principal payments are as follows (in thousands):


Years ending December 31:
Remainder of 2018	$	1,843
2019		5,845
	$	7,688

Business combinations (Tables)

6 Months Ended

Jun. 30, 2018

Business combinations

Schedule of fair value of consideration transferred


Fair value of consideration transferred:
Cash	$	3,200
Obligation to issue cash		800
Total acquisition consideration	$	4,000

Schedule of fair value of assets acquired and liabilities assumed

Fair value of assets acquired and liabilities assumed:


Cash and cash equivalents	$	199
Accounts receivable		210
Inventory		828
Prepaid expenses		71
Property and equipment and other non-current assets		180
Intangible Assets		2,950
Goodwill		1,308
Total assets acquired		5,746
Contractual obligations		(1,155)
Accounts payable and accrued liabilities		(591)
Net assets acquired	$	4,000

Goodwill and Acquired Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2018

Goodwill and Acquired Intangible Assets

Rollforward of goodwill balance

The following is a rollforward of our goodwill balance (in thousands):


	Goodwill
Balance as of December 31, 2017	$	—
Goodwill acquired		1,308
Balance as of June 30, 2018	$	1,308

Summary of purchased intangible assets

Purchased intangible assets consist of the following (in thousands):


		June 30, 2018
	Estimated
	Useful	Gross				Net
	Life	Carrying		Accumulated		Carrying
	(in years)	Value		Amortization		Value
Developed technology	7	$	1,650	$	(172)	$	1,478
Customer relationships	10		1,250		(95)		1,155
Trade names	3		50		(7)		43
Total		$	2,950	$	(274)	$	2,676

Schedule of future estimated amortization expense of acquired intangibles

Future estimated amortization expense of acquired intangibles as of June 30, 2018 is as follows (in thousands):


Remainder of 2018	$	328
2019		582
2020		500
2021		403
2022		320
Thereafter		543

Organization and operations (Details) $ / shares in Units, $ in Millions		1 Months Ended
	Dec. 04, 2017	Dec. 31, 2017 USD ($) $ / shares shares	Jun. 30, 2018 shares	Dec. 11, 2017 shares
Initial Public Offering
Common stock authorized (in shares)		120,000,000	120,000,000	120,000,000
Preferred stock authorized (in shares)		5,000,000	5,000,000	5,000,000
Reverse stock split ratio	0.311
Common stock
Initial Public Offering
Aggregate net proceeds from IPO \| $		$ 65.6
Reverse stock split ratio	0.311
Initial Public Offering
Initial Public Offering
Preferred stock converted to common stock (in shares)		14,185,744
Carrying value of preferred stock, notes and warrants reclassified as common stock and additional paid-in capital \| $		$ 143.3
Initial Public Offering \| Common stock
Initial Public Offering
Number of shares issued		4,916,480
Shares issued (in dollars per share) \| $ / shares		$ 15.00

Revenue recognition (Details) $ in Thousands	3 Months Ended		6 Months Ended
Revenue recognition (Details) $ in Thousands	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($) item	Jun. 30, 2017 USD ($)
Revenue recognition
Number of bi-annual preventative maintenance visits included in implied warranty and extended service contracts \| item			2
Term of average selling prices used to determine estimate of current sales price			12 months
Product revenue	$ 5,200	$ 3,337	$ 9,945	$ 6,762
Service and other revenue	3,174	1,608	5,682	3,252
Total revenue	$ 8,643	$ 5,213	$ 16,164	$ 10,551
Revenue by region as a percentage of total revenue	100.00%	100.00%	100.00%	100.00%
North America
Revenue recognition
Total revenue	$ 5,156	$ 3,329	$ 9,623	$ 6,443
Revenue by region as a percentage of total revenue	60.00%	64.00%	60.00%	61.00%
EMEA
Revenue recognition
Total revenue	$ 2,766	$ 1,558	$ 5,241	$ 3,226
Revenue by region as a percentage of total revenue	32.00%	30.00%	32.00%	31.00%
Asia Pacific
Revenue recognition
Total revenue	$ 721	$ 326	$ 1,300	$ 882
Revenue by region as a percentage of total revenue	8.00%	6.00%	8.00%	8.00%
Instrument and accessories
Revenue recognition
Standard warranty period			1 year
Implied warranty period			1 year
Product revenue	$ 1,765	$ 1,670	$ 3,774	$ 3,456
Consumable and other product
Revenue recognition
Product revenue	3,435	1,667	6,171	3,306
Accelerator and CLIA Lab services
Revenue recognition
Service and other revenue	2,092	982	3,699	2,034
Other services
Revenue recognition
Service and other revenue	$ 1,082	$ 626	$ 1,983	$ 1,218

Net loss per share (Details)		6 Months Ended
Net loss per share (Details)	Dec. 04, 2017	Jun. 30, 2018 shares	Jun. 30, 2017 shares
Net loss per share
Number of dilutive securities excluded in the calculation of diluted net loss per share		2,770,362	16,787,219
Reverse stock split ratio	0.311
Common stock
Net loss per share
Obligation to issue warrants, in shares		93,341	93,341
Series A3 Preferred Stock
Net loss per share
Obligation to issue warrants, in shares		300,000	300,000
Redeemable convertible preferred stock
Net loss per share
Number of dilutive securities excluded in the calculation of diluted net loss per share			14,176,025
Unvested restricted common stock and restricted stock units
Net loss per share
Number of dilutive securities excluded in the calculation of diluted net loss per share		150,843	268,757
Stock options
Net loss per share
Number of dilutive securities excluded in the calculation of diluted net loss per share		2,543,478	2,221,774
Warrants
Net loss per share
Number of dilutive securities excluded in the calculation of diluted net loss per share		76,041	120,663

Fair value measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Cash equivalents	$ 57,459	$ 78,182
Total financial assets	57,459	78,182
Level 1
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Cash equivalents	57,459	78,182
Total financial assets	$ 57,459	$ 78,182

Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Inventory
Raw materials	$ 2,326	$ 1,032
Work in process	1,634	968
Finished goods	1,526	1,571
Total	$ 5,486	$ 3,571

Investments (Details) - Minority interest in preferred stock in privately held company - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Sep. 30, 2016
Schedule of Cost-method Investments [Line Items]
Purchase price of investment		$ 0.3
Impairment on investments	$ 0.0

Other accrued expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Other accrued expenses
Accrued inventory	$ 465	$ 835
Accrued royalties	250	221
Accrued professional services	607	346
Accrued development costs	1,350	1,559
Accrued acquisition payment	800
Accrued other	709	599
Total accrued expenses	$ 4,181	$ 3,560

Redeemable convertible preferred stock (Details)	Dec. 04, 2017	Jun. 30, 2018 shares	Dec. 31, 2017 shares	Dec. 11, 2017 shares
Redeemable convertible preferred stock.
Preferred stock authorized (in shares)		5,000,000	5,000,000	5,000,000
Preferred stock conversion ratio	0.311

Warrants, stock-based compensation, stock options, restricted stock and restricted stock units - Warrants (Details) - Warrants	6 Months Ended
	Jun. 30, 2018 $ / shares shares
Number outstanding
Outstanding at the beginning of the period (in shares) \| shares	86,090
Granted (in shares) \| shares	10,000
Exercised (in shares) \| shares	(20,049)
Outstanding at the end of the period (in shares) \| shares	76,041
Weighted average exercise price
Outstanding at the beginning of the period (in dollars per share) \| $ / shares	$ 9.14
Granted (in dollars per share) \| $ / shares	21.00
Exercised (in dollars per share) \| $ / shares	3.35
Outstanding at the end of the period (in dollars per share) \| $ / shares	$ 12.23

Warrants, stock-based compensation, stock options, restricted stock and restricted stock units - Share-based compensation expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Common stock, restricted stock, stock options, restricted stock units and warrants
Share-based compensation expense	$ 890	$ 550	$ 1,526	$ 808
Cost of product revenue
Common stock, restricted stock, stock options, restricted stock units and warrants
Share-based compensation expense	19	6	29	11
Cost of service and other revenue
Common stock, restricted stock, stock options, restricted stock units and warrants
Share-based compensation expense	51	13	83	19
Research and development
Common stock, restricted stock, stock options, restricted stock units and warrants
Share-based compensation expense	138	52	209	73
General and administrative
Common stock, restricted stock, stock options, restricted stock units and warrants
Share-based compensation expense	$ 682	$ 479	$ 1,205	$ 705

Warrants, stock-based compensation, stock options, restricted stock and restricted stock units - Stock-based award plans (Details) - shares	Jan. 01, 2018	Jun. 30, 2018	Dec. 31, 2017
2007 Plan
Common stock, restricted stock, stock options, restricted stock units and warrants
Common stock available for future awards (in shares)		0
2017 Plan
Common stock, restricted stock, stock options, restricted stock units and warrants
Shares authorized under the plan (in shares)			1,042,314
Shares available for grant under the plan (in shares)		529,480
Annual increase in the shares available for grant under the plan (as a percent of shares of common stock outstanding)		4.00%
2017 ESPP
Common stock, restricted stock, stock options, restricted stock units and warrants
Shares authorized under the plan (in shares)		427,305
Shares available for grant under the plan (in shares)		427,305
Annual increase in the shares available for grant under the plan (as a percent of shares of common stock outstanding)		1.00%
Increase in the shares available for grant under the plan (in shares)	218,842
Stock options
Common stock, restricted stock, stock options, restricted stock units and warrants
Options outstanding (in shares)		2,543,478	2,249,843
Stock options \| 2007 Plan
Common stock, restricted stock, stock options, restricted stock units and warrants
Options outstanding (in shares)		2,092,449
Common stock issued and outstanding pursuant to the exercise of options (in shares)		729,232
Stock options \| 2017 Plan
Common stock, restricted stock, stock options, restricted stock units and warrants
Shares authorized under the plan (in shares)			2,490,290
Restricted and unrestricted stock awards \| 2007 Plan
Common stock, restricted stock, stock options, restricted stock units and warrants
Common stock issued and outstanding pursuant to restricted or unrestricted stock awards (in shares)		1,128,975

Warrants, stock-based compensation, stock options, restricted stock and restricted stock units - Stock options (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Aggregate intrinsic value
Share-based compensation expense	$ 890	$ 550	$ 1,526	$ 808
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options expiration period (in years)			10 years
Number outstanding
Outstanding at the beginning of the period (in shares)			2,249,843
Granted (in shares)			508,418
Exercised (in shares)			(157,394)
Cancelled or forfeited (in shares)			(57,389)
Outstanding at the end of the period (in shares)	2,543,478		2,543,478		2,249,843
Vested and expected to vest at the end of the period (in shares)	2,543,478		2,543,478
Exercisable at the end of the period (in shares)	1,127,001		1,127,001
Weighted-average exercise price
Outstanding at the beginning of the period (in dollars per share)			$ 6.05
Granted (in dollars per share)			19.35
Exercised (in dollars per share)			2.42
Cancelled or forfeited (in dollars per share)			11.64
Outstanding at the end of the period (in dollars per share)	$ 8.80		8.80		$ 6.05
Vested and expected to vest at the end of the period (in dollars per share)	8.80		8.80
Exercisable at the end of the period (in dollars per share)	$ 4.91		$ 4.91
Remaining contractual life
Outstanding (in years)			7 years 11 months 19 days		7 years 9 months 18 days
Vested and expected to vest at the end of the period (in years)			7 years 11 months 19 days
Exercisable at the end of the period (in years)			6 years 7 months 2 days
Aggregate intrinsic value
Outstanding	$ 16,560		$ 16,560		$ 34,695
Vested and expected to vest at the end of the period	16,560		16,560
Exercisable at the end of the period	10,648		$ 10,648
Weighted-average fair value of options granted			$ 8.43	$ 4.50
Share-based compensation expense	600	400	$ 1,100	$ 500
Intrinsic value of stock options exercised	1,500	$ 100	2,500	$ 200
Total unrecognized compensation cost related to unvested stock options	$ 7,700		$ 7,700
Period of recognition of unrecognized compensation cost			3 years 3 months 18 days
Fair value assumptions
Risk-free interest rate (as a percent)			2.70%	2.00%
Expected dividend yield (as a percent)			0.00%	0.00%
Expected term (in years)			6 years	6 years
Expected volatility (as a percent)			41.40%	52.00%
First anniversary \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)			4 years
Vesting percentage (as a percent)			25.00%
Vesting ratably on a monthly basis over the remaining three years \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)			3 years
Vesting percentage (as a percent)			75.00%

Warrants, stock-based compensation, stock options, restricted stock and restricted stock units - Restricted stock (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		3 Months Ended		6 Months Ended
	Jan. 31, 2015	Dec. 31, 2014	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Weighted-average grant date fair value per share
Share-based compensation expense			$ 890	$ 550	$ 1,526	$ 808
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted common stock issued (in shares)					0
Number of restricted stock
Unvested restricted common stock at the beginning of the period (in shares)					177,192
Vested (in shares)					(99,528)
Unvested restricted common stock at the end of the period (in shares)			77,664		77,664
Weighted-average grant date fair value per share
Unvested restricted common stock at the beginning of the period (in dollars per share)					$ 3.11
Vested (in dollars per share)					3.10
Unvested restricted common stock at the end of the period (in dollars per share)			$ 3.12		$ 3.12
Share-based compensation expense			$ 100	$ 100	$ 300	$ 300
Total unrecognized compensation cost related to unvested stock awards			$ 200		$ 200
Period of recognition of unrecognized compensation cost					6 months
Aggregate fair value of restricted stock awards					$ 1,800
2007 Plan \| Restricted stock \| Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted common stock issued (in shares)		78,912
Vesting period (in years)		4 years
2007 Plan \| Restricted stock \| Executive
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted common stock issued (in shares)	781,060
Vesting period (in years)	4 years
2007 Plan \| Restricted stock \| Executive \| First anniversary
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage (as a percent)	25.00%
2007 Plan \| Restricted stock \| Executive \| Vesting ratably on a monthly basis over the remaining three years
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	3 years
Vesting percentage (as a percent)	75.00%

Warrants, stock-based compensation, stock options, restricted stock and restricted stock units - Restricted stock units (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Weighted-average grant date fair value per share
Share-based compensation expense	$ 890	$ 550	$ 1,526	$ 808
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted common stock issued (in shares)			73,179
Number of restricted stock units
Granted (in shares)			73,179
Unvested restricted common stock at the end of the period (in shares)	73,179		73,179
Weighted-average grant date fair value per share
Granted (in dollars per share)			$ 19.05
Unvested restricted common stock at the end of the period (in dollars per share)	$ 19.05		$ 19.05
Share-based compensation expense	$ 100		$ 100
Total unrecognized compensation cost related to unvested stock awards	$ 1,300		$ 1,300
Period of recognition of unrecognized compensation cost			3 years 4 months 24 days
2017 Plan \| Restricted stock units \| Subject to a four year vesting schedule
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted common stock issued (in shares)			54,979
Vesting period			4 years
Number of restricted stock units
Granted (in shares)			54,979
2017 Plan \| Restricted stock units \| First anniversary
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage (as a percent)			25.00%
2017 Plan \| Restricted stock units \| Vesting ratably on a monthly basis over the remaining three years
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years
Vesting percentage (as a percent)			75.00%
2017 Plan \| Restricted stock units \| 21 month vesting with 50% vesting on December 31, 2018 and 50% vesting on December 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted common stock issued (in shares)			18,200
Vesting percentage (as a percent)			50.00%
Number of restricted stock units
Granted (in shares)			18,200

Commitments and contingencies - License agreements and Lease commitments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Minimum future rent payments under the lease agreement
Remainder of 2018	$ 682		$ 682
2019	1,399		1,399
2020	814		814
2021	35		35
Total	2,930		2,930
Rent expense	400	$ 300	700	$ 600
Tufts University
License agreements
Royalty expense	200	100	300	200
Other licenses
License agreements
Royalty expense		$ 100		$ 200
Annual minimum royalty to be paid under the license agreement	50		50
Other licenses \| Maximum
License agreements
Royalty expense	100		100
Other non-current liabilities
Lease commitments
Deferred rent expense	100		100
Other accrued expenses \| Maximum
Lease commitments
Deferred rent expense	$ 100		$ 100

Commitments and contingencies - Development and supply agreement and Legal contingencies (Details) - STRATEC Biomedical - Development and supply agreement $ / shares in Units, $ in Millions	6 Months Ended
	Jun. 30, 2018 USD ($) $ / shares shares
Commitments and contingencies
Amount payable to counterparty	$ 1.5
Period to purchase minimum number of commercial units	7 years
Fee payable on shortfall of commercial units purchase	$ 11.7
Issuance of supply warrants on termination of agreement, number (in shares) \| shares	93,341
Issuance of supply warrants on termination of agreement, value per share (in dollars per share) \| $ / shares	$ 0.003214

Notes payable (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
Notes payable (Details) - USD ($) $ in Thousands	Aug. 31, 2018	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Debt payment obligations due based on principal payments
Remainder of 2018		$ 1,843		$ 1,843
2019		5,845		5,845
Debt payment obligations		7,688		7,688
Non-cash interest expense				100	$ 100
Maximum
Debt payment obligations due based on principal payments
Non-cash interest expense		100	$ 100
Loan agreement
Notes payable
Additional amounts available to borrow		$ 0		0
Term charge				500
Repayments of principal amount	$ 0			$ 1,400
Loan agreement \| Minimum
Notes payable
Interest rate (as a percent)		8.00%		8.00%
Prime rate \| Loan agreement
Notes payable
Margin on variable interest rate (as a percent)				(5.25%)

Collaboration and license arrangements (Details) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2016 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Dec. 31, 2015 USD ($) item agreement	Dec. 31, 2017 USD ($)
Collaboration and license arrangements
Revenues recognized		$ 269	$ 268	$ 537	$ 537
Joint development and license agreement
Collaboration and license arrangements
Consideration on collaboration activities				3,200
Revenues recognized		300		500
Deferred revenue		1,600		1,600
Evaluation and option agreements and license agreement
Collaboration and license arrangements
Revenues recognized	$ 1,800
Deferred revenue		$ 1,200		$ 1,200			$ 1,200
Number of agreements \| agreement						3
Number of fields for which the agreements were entered \| item						3
Non-refundable license fee	1,000					$ 2,000
Amount allocated to the option of the related field	$ 800

Business combinations (Details) - USD ($) $ in Thousands		1 Months Ended	6 Months Ended
Business combinations (Details) - USD ($) $ in Thousands	Jan. 30, 2018	Jul. 31, 2018	Jun. 30, 2018
Fair value of assets acquired and liabilities assumed:
Goodwill			$ 1,308
Aushon acquisition
Fair value of consideration transferred
Cash	$ 3,200
Obligation to issue cash	800
Total acquisition consideration	4,000
Fair value of assets acquired and liabilities assumed:
Cash and cash equivalents	199
Accounts receivable	210
Inventory	828
Prepaid expenses	71
Property and equipment and other non-current assets	180
Intangible Assets	2,950
Goodwill	1,308
Total assets acquired	5,746
Contractual obligations	(1,155)
Accounts payable and accrued liabilities	(591)
Net assets acquired	$ 4,000
Risk-adjusted discount rate used to determine fair value of intangible assets	14.40%
Transaction costs			$ 100
Aushon acquisition \| Subsequent event
Fair value of consideration transferred
Cash		$ 800

Goodwill and Acquired Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Rollforward of goodwill balance
Goodwill acquired			$ 1,308
Balance as of end of period	$ 1,308		1,308
Purchased intangible assets
Gross Carrying Value	2,950		2,950
Accumulated Amortization	(274)		(274)
Net Carrying Value	2,676		2,676
Amortization expense	200	$ 0	300	$ 0
Future estimated amortization expense
Remainder of 2018	328		328
2019	582		582
2020	500		500
2021	403		403
2022	320		320
Thereafter	543		$ 543
Developed technology
Purchased intangible assets
Estimated Useful Life			7 years
Gross Carrying Value	1,650		$ 1,650
Accumulated Amortization	(172)		(172)
Net Carrying Value	1,478		$ 1,478
Customer relationships
Purchased intangible assets
Estimated Useful Life			10 years
Gross Carrying Value	1,250		$ 1,250
Accumulated Amortization	(95)		(95)
Net Carrying Value	1,155		$ 1,155
Trade names
Purchased intangible assets
Estimated Useful Life			3 years
Gross Carrying Value	50		$ 50
Accumulated Amortization	(7)		(7)
Net Carrying Value	$ 43		$ 43

Related party transactions (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Joint development and license agreement
Related party transactions
Deferred revenue	$ 1.6		$ 1.6
bioMrieux \| Joint development and license agreement
Related party transactions
Related party revenue	0.3	$ 0.3	0.5	$ 0.5
Deferred revenue	1.6		1.6		$ 2.1
Tufts University \| License agreement
Related party transactions
Royalty expense	0.2	$ 0.1	0.3	$ 0.2
Harvard University \| Maximum
Related party transactions
Related party revenue	$ 0.1		$ 0.1